At least five ships head to Russia with nearly 200,000 tonnes of raw Brazilian sugar sold by European traders, which is roughly double of Russia’s annual purchases of the product, according to shipping data consulted by Reuters. Sanctions imposed on Russia after its invasion of Ukraine have increased the demand for sugar and other staple products while supermarket shelves are being emptied due to food stockpiling. However, sanctions can also make it more difficult for carriers to get paid for their services. The volume of sugar shipped is unusually high, noting that Russia tends to import around 100,000 tonnes of sugar a year. Russia is not a notable importer or exporter of sugar, but Russians have started hoarding the sweetener. While sugar sales are not sanctioned, financial transactions are. In addition, analysts point out that security issues in the Black Sea could hamper the operation of vessels there.
Sources: Reuters/Money Times/Datamar News